April 24, 2013

RSM DEVELOPMENT & MANAGEMENT SELLS TWO PROPERTIES TO CALIFORNIA-BASED REIT FOR $21.6 MILLION

Southfield, MI – RSM Development & Management (RSM) recently sold two medical office buildings (MOBs) totaling nearly 100,000 square feet on March 28, 2013. The properties were purchased by Griffin-American Healthcare REIT II, Inc., co-sponsored by American Healthcare Investors and Griffin Capital Corporation, a real estate investment trust organized to invest in a diversified portfolio of medical office and healthcare related properties. Located in Novi, Michigan, Keystone Medical Office Center is a Class “A” 57,000 square foot, 80% leased MOB that sold for nearly $12.6 million ($221 per square foot). “This transaction represents a very significant return to our investors. We felt this was a strategic time to divest based upon the improved market conditions and high demand for MOBs across the country,” states Scott Marcus, Co-Founder and Principal of RSM Development & Management. Originally developed in 2006, the project was a joint venture between RSM and the physician tenants.

 

West Oaks Medical Center is a Class “A” 38,000 square foot medical office building located in West Bloomfield, Michigan. The approximate $9 million sale price ($237 per square foot) represents one of the highest price-per-square-foot obtained for an off-campus MOB in Michigan. Prior to RSM’s acquisition in 2006, the property was a Compuware Corporation general office building. Originally constructed in 1971, RSM re-developed the building and converted it to a Class “A” medical office building, which includes specialties such as orthopedic, OB/GYN, pediatrics, internal medicine and dental. At time of divestiture, the property was over 90% leased. “This adaptive re-use project was very rewarding based upon the age and prior uses of the building,” offered Marcus. “We remain very committed to the opportunities that Michigan holds for us and intend to continue our acquisition strategy in the state,” he adds. RSM will continue to provide property management and leasing of the two facilities.

Keystone Medical Center in Novi, Michigan

Keystone Medical Center

Keystone Medical Center in Novi, Michigan

West Oaks Medical Center